Vodafone losing millions as it drops broadband Pay-TV plans

Wednesday, April 26th 2017

Vodafone, a major telecom operator of UK, has dropped its plans of launching a broadband based Pay-TV service in UK, which has cost the company millions of pounds. Vodafone is seeking to exit deals entered upon in preparation of its launch of pay-TV services last year, thus wasting millions. It has already paid to channel providers and it faces penalty to exit early on the mostly 3-year contacts inked. Strangely, this is the second time that the operator has abandoned its plans for an IPTV service in the country.

The news confirming Vodafone's decision to shelve the proposed service is more likely to indicate it has no intention of entering the Pay-TV sector in the near future. This decision also leaves Vodafone UK without an important cog in the strategic rollout that it has pursued in other major markets of Europe, where it offers bundles of 'converged' mobile, broadband and Pay-TV, as in Italy, Spain, Germany and other places.

The decision also shows its weakness in UK's Pay-TV market, although it remains a major player in other major European markets. However, rumours of Vodafone's asset swap or merger with cable giant Virgin Media, may point the way for the operator to re-enter the market later, but until then it will remain a triple-play provider in UK market.

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